“The investigation department of Russia’s Investigative Committee in the Central Federal District filed a criminal case against president of RSC Energia Vitaly Lopota. He is suspected of office abuse under Article 201 Part 1 of Russia’s Criminal Code,” Markin said.

Detectives found that “in 2010, Lopota who performed managerial functions at RSC Energia gave instructions to the leadership of its subsidiary, an experimental machine-building plant of RSC Energia, to grant loans to two companies participating in commercial space project Sea Launch.”

“These monetary funds should have been used as advanced payments on contracts for producing piloted spaceships within state-funded and other contracts. Meanwhile, loans were extended to affiliated organizations on terms unprofitable for Energia,” Markin said.

Thus, “Lopota’s misuse of powers in violation of interests of RSC Energia entailed major losses of more than 41 million rubles (around $1.1 million) to the state, which owns a 38% stake in Energia.

The criminal case was filed after a report of the first deputy chief of the Federal Space Agency was probed, Markin said.